requirement The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget Year 2 Quarter Year 3 Quarter 2 Data 6e, eee Budgeted unit sales Selling price per unit 45,000 $7 7e,000 90,000 100, 0 120,e00 A E B D F G Chapter 8: Applying Excel 1 2 Data 3 Year 3 Quarter 4 2 3 4 1 2 Budgeted unit sales 45,000 70,000 120,000 60,000 90,000 100,000 6 Selling price per unit $ 7 7 per unt Accounts receivable, beginning balance 8 65,000 Sales collected in the quarter sales are made 75% Sales collected in the quarter after sales are made 10 25% Desired ending finished goods inventory is 11 30 % of the budgeted unit sales of the next quarter Finished goods inventory, beginning 12 12,000 units 13 Raw materials required to produce one unit pounds 5 Desired ending inventory of raw materials is 14 10% of the next quarter's production needs Raw materials inventory, beginning 15 pounds per pound 23,000 - Raw material costs 16 0.80 -Raw materials purchases are paid 17 60% in the quarter the purchases are made and 18 40% in the quarter following purchase Accounts payable for raw materials, beginning 19 balance 81,500 a. What are the total expected cash collections for the year under this revised budget? Expected cash collections for the year b. What is the total required production for the year under this revised budget? Total required production for the year c. What is the total cost of raw materials to be purchased for the year under this revised budget? Total cost of raw materials to be purchased for the year d. What are the total expected cash disbursements for raw materials for the year under this revised budget? Total expected cash disbursements for raw materials for the year